(CNN)A tiny island nation of less than 2 million people off the Arabian Peninsula, Bahrain has long excelled economically thanks to its rich oil and gas reserves.
Oil provides about 70% of government revenue – but Bahrain’s reserves are expected to be exhausted within the next decade. This – and the global push to move away from dirty fuels – means the kingdom is looking at ways to diversify its economy and energy mix.
This is good news for Solar One, Bahrain’s first solar panel company. Since its inception in 2017, the startup boasts of having contributed over two megawatts of solar power to the country’s energy mix — enough to power around 380 US homes. It’s a drop in the ocean, but hopefully it marks the beginning of a sea change.
“Renewable energy is one of the key sectors growing in the region,” said Husain Mohamed Rajab, CEO of Tamkeen, a government agency that supports small businesses and has invested in Solar One. “The GCC (Gulf Cooperation Council) is one of the most energy-rich regions in the world, and this creates a keen interest from governments to support the growth and development of any activity in this sector.”
contribution to the energy mix
Solar One has the capacity to produce 60,000 solar panels per year. It sells them to private customers such as schools, homes or factories to supply their electricity, with excess electricity being fed into the grid.
In this way, Solar contributes to the national energy mix, says Faisal Khalifeh, Founder and CEO of Solar One.
But it’s only a small step. Renewable energies like wind and solar have yet to make a small dent in the country’s energy mix, where gas still dominates. Bahrain has set a national target for renewable energy to account for 5% of the country’s energy supply by 2025 and 10% by 2035.
These goals are part of a broader vision to diversify the economy that has been hit hard over the past decade. Last year, the country announced a $30 billion recovery plan that includes building five new cities and artificial islands to attract tourists, building a U.S. trade zone, and building a road and rail bridge that will connect the United States Bahrain connects with Saudi Arabia, the region’s largest economy.
It has also launched a permanent residency program to attract top talent and aims to bring in $2.5 billion in private investment by 2023. The hope is that new talent and investment will fuel entrepreneurship and drive growth.
“We’re the first manufacturer (of solar panels),” says Khalifeh, “but we won’t be the last.”
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